DarkHorse,
Thank you for your post.
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DarkHorse,
Thank you for your post.
First impressions are solid result, will look deeper when I get more time. Good to see efficiency increase in base aquisitions.
Chief concerns at the moment are that RoE is only marginally greater than (or even less than) cost of capital. I believe the development centres will increase RoE but this remains to be seen. At the moment have valued company as no growth as I am not fully convinced that RoE>Cost of Capital
For the record I value company as around $1.40
EPS 5 cps v 4.8 Assume 10 cps for the full year, (my no growth PE is the same one Ben Grahame used 8.5), fair value 85 cps in my opinion if you believe the intangible asset valuation ?
Total Assets $210m of which $197.6m is intangible assets. (Refer to my comments in the Veritas thread for my jaundiced view of intangible assets).
Taking into account debt the net NTA is -18 cps up from -15 cps in the previous corresponding period.
Divvy yield 5% net or 6.9% gross. Disc: Don't hold.
To clarify my model is a bit more complex than a p/e.
I modelled it as no growth after the current portfolio has a full year impact + allowing for some increase in efficiency (totally reasonable I believe) and taking into account debt etc. but I have not modelled the impact of future acquisitions as I believe RoE is around about the Cost of acpital currently (hopeful this will prove to not be the case as they develop their own centres).
Happy with result I bought because I like combination of income and growth
The operational cash flow being more then $11mil negative for 6 months does not look to positive to me. Is there an acceptable explanation for this high outflow of cash?
Thanks Winner69